Is There Really A Flexible Endowment Plan? Meet ELASTIQ

A few weeks back, we shared one of our latest insurance savings plans with MoneySmart, and this was what they said about ELASTIQ:

Signing up for an endowment plan feels like getting married. In theory, there’s good stuff to look forward to in the future—a nice payout of your investment gains over the years and the peace of mind from being protected by life insurance.

However, in order to get there, you need to first say “I do”. For commitment-phobes, spending the better part of your working years locked into an endowment plan can be a frightening thought. Getting slapped with surrender charges if you wish to give it up, and penalties for withdrawal if you urgently need the money? No thanks.

If only there was an endowment plan that would let you enjoy the benefits without the inflexibility.

Wait, there is!

ELASTIQ, a flexible endowment plan on your terms

With ELASTIQ, Etiqa’s new flexible whole life insurance savings plan a.k.a. endowment plan, you can enjoy the benefits while having the freedom to live your life the way you want to.

Unlike other endowment plans, which lock you in for years, the lock-in period for ELASTIQ is just 90 days.

After 90 days, you are absolutely free to top up, withdraw funds or set up monthly regular savings with NO penalty or interest clawback!

There are also NO surrender charges, so if at any time you decide the endowment plan is not for you, you are free to leave with your earned interests too. But ELASTIQ can only be purchased once. If you surrender your policy, you will not be able to re-purchase ELASTIQ in this tranche.

In fact, the only charge you might have to pay is a S$5 monthly charge if your account value falls below S$5,000.

How it works

To apply for ELASTIQ, you begin by purchasing the plan online through their customer portal TiqConnect, and paying an initial single premium of S$5,000 to S$50,000, your choice.

Most endowment plans have quite a hefty minimum single premium, so this is more accessible for young adults who may not be ready to lock in too much cash.

After the first 90 days, you can top-up, withdraw funds or put in place a monthly regular savings plan whenever you want, all of which can be done through their portal too.

The minimum top-up or withdrawal is S$500 and in increments of S$500 per top-up or withdrawal, with no penalty or interest clawback. The maximum contribution is S$200,000.

No matter what you do with your funds, you are guaranteed a 2.02% per annum interest rate for the first three years, with an additional 0.3% per annum bonus every 3 years if you have not made any withdrawals.

You also enjoy whole life insurance protection at 106.8% of your account value.

Who is ELASTIQ for?

If you can relate to any of the following, ELASTIQ can be an excellent inclusion in your financial plan.

– You want flexibility and aren’t ready for the long-term commitment of being chained to an endowment plan. Financial objectives and circumstances change over time, and you may want the freedom to withdraw or top-up funds whenever you want.

– You are looking for a low-risk investment product to grow your savings with. Endowment plans are predictable investments as you know for sure when the plan will reach maturity.

– You need extra insurance coverage to supplement your current level of protection and offer you and your family greater security.

This article was written in collaboration with MoneySmart and was originally published here.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is accurate as at 18 Feb 2019. This content is for reference only. You should seek advice from a financial advisory representative before making any purchase. In the event you choose not to seek financial advice, do consider whether the product is suitable for you.

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